Changes compared to phase 1 : NLS has been tweaked to enter
phase 2 of eSTREAM, and the new version is called NLSv2 by the
authors. The archived page with the results on the old version can be
found here.

Cryptanalysis :

Cameron McDonald and Philip Hawkes,
"On Exploiting Adjacent Bits in NLS",
pdf. (Note that this attack is on NLS, not on NLSv2. NLSv2 is secure against this attack.)